Jan 26, 2016. Friday’s rallies evaporate
–By the end of the day Crude oil had completely erased Friday’s rally, with CLH down 2.49 late to just 29.70. Weakness transferred to stocks, which also had a soft close in a reversal of Friday’s gains, and Chinese shares fell 6% today. Risks are likely increasing for another official “one-time” devaluation by China.
–Yesterday’s action in interest rates was lackluster; ten year yield eased 3 bps to close at 202. Premium offered. Today’s news includes the 2 year auction and AAPL releases earnings after the close. Yesterday AAPL closed below 100 and is off over 23% from the high in July.
–Dallas Fed mfg data yesterday was horrible at -34.6. The pressure is on the Fed to lighten up on the tightening theme; the fact that stocks are trading lower going into Wednesday’s announcement isn’t a particularly encouraging sign. More buying of EDZ6 100 calls yesterday, solidly 0.5 bid at the end of the day. EDZ6 9975c were small 1.5 bid.
